SodaStream International Ltd. (NASDAQ: SODA) shares rose in value on Wednesday January 18 on lower trade volume than normal after a number of analysts weighed in on the investing value of the stock with a upgraded rating.
Meanwhile, in early trade today, the S&P 500 SPX, +0.00% was off 2 points, or 0.1%, at 2,265, shortly after open. The Nasdaq Composite COMP, +0.20% was flat at 5,537. The Dow Jones Industrial Average DJIA, -0.20% slipped 54 points or 0.3%, to 19,770.
Analysts at Zacks Investment Research upgraded shares of SodaStream International Ltd. (NASDAQ: SODA) from Sell to Hold today. The company currently has a rating of Hold on the shares. As a means of comparison, a number of other analysts have commented on the company in recent days, and the company has secured a consensus one-year price target of $35.20, less than the opening price of $41.56, a difference of 8.46 percent. SodaStream International Ltd. stock has a 52-week high of $41.85. Share prices sometimes get a jump to the upside when analysts upgrade a stock.
Yesterday SodaStream International Ltd. (NASDAQ: SODA) shares last traded at $41.61, an increase of $0.29 over the previous closing price. Opening at $41.56, they fluctuated from $41.21 and $41.69 throughout the day.
SodaStream International Ltd. (NASDAQ: SODA) now has a market cap of 882.01M.
SodaStream International Ltd. (NASDAQ: SODA) Average Daily Trading Volume
25,111 shares traded hands yesterday, 19 percent lower than the average, out of a total float 18,457,000. lower than normal. Look for trading volume to pick up in the coming days as swing traders often use swings in trading volume to identify heavy volume accumulation or distribution by institutional investors.
As with all potential breakouts, investors look for volume to be at least 40%-50% higher than normal on the breakout to show that fund managers and other professional investors are jumping in.
Institutional sponsorship is defined by ownership of a stock by mutual funds, banks, pension funds and other large institutions.
Institutional investors such as these retain substantial teams of analysts that research thousands of stocks. Thus, watching their interests is a good way to make sure you are buying the right stocks.
SodaStream International Ltd. (NASDAQ: SODA) Moving Averages
A moving average can also act as support or resistance. In an uptrend a 50-day, 100-day or 200-day moving average may act as a support level, as shown in the figure below.
This is because the average acts like a floor (support), so the price bounces up off of it.
In a downtrend a moving average may act as resistance; like a ceiling, the price hits it and then starts to drop again.
By tracking the activity of these professional investors—and the moving averages they affect—it allows for traders to make more effective decisions on trades.
Trades for SodaStream International Ltd. (NASDAQ: SODA) have ranged from $11.66 – 41.85, and the stock now has a 50-day MA of $39.22 and 200-day MA of $30.09. Today’s last price is 0.57%% below the 52 week high of $41.85.
Earnings growth is a crucial factor to consider when buying stocks and investors look for companies that have been successful at growing their earnings by at least 25% for a 3 year period.
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